A new client asked a good question this week: can I write off the interest and excise tax on my camper? In her situation, the answer is "Yes!" Here's a thumbnail sketch of her situation and why she can write off those expenses.
The camper fits the IRS definition of a "dwelling unit". This means, among other things, that it has permanently mounted sleeping, eating and bathroom facilities. They bought it with a loan and have $4500 in interest this year and paid $800 in excise tax to register it. That additional $5300 in itemized deductions will increase their state and federal refunds by ~$1150.
The even better news for her: she didn't claim the RV interest and excise tax the past two years and can amend those years to receive additional refunds that will probably be close to $1150/year.
Now don't get me wrong, I'm not suggesting you take out a loan to buy your dream RV. But if you own one, talk to your tax professional today about the possibility of writing off your interest and excise tax.
Send us a message and we'll be in touch soon!